Standard&Poor's Ratings Services derives its 'BB+' corporate credit rating on ESKOM from: "Weak" business risk and "highly leveraged" financial risk profile assessments for the company. The application of "Criteria For Assigning 'CCC+', 'CCC', 'CCC-', And 'CC' Ratings," to arrive at our stand-alone credit profile (SACP) of 'ccc+' in light of the company's less than adequate liquidity. Assessment of the company's status as a government-related entity. This results in a six-notch uplift in the rating to 'BB+'. The negative outlook reflects execution risk associated with government support, and that ESKOM's operating performance has not yet stabilized. South Africa's dominant electric utility. Vertical integration across the entire electricity value chain. Recent negative regulatory intervention in tariff setting. Heightened operational risks
